If the Long-Run Supply Curve Is Upward Sloping, We Know

question 9

Multiple Choice

If the long-run supply curve is upward sloping, we know that

• A) entrepreneurs are earning higher profits as output expands.
• B) some input prices are increasing as the industry expands.
• C) firms are getting larger as the industry contracts.
• D) the law of diminishing marginal returns has set in.

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Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within a year or within the operating cycle of a business, whichever is longer.

Converted Into Cash

The process of liquidating assets or investments to generate cash flow or liquidity.

Prepaid Expenses

Expenses paid in advance for goods or services to be received in the future, considered as current assets on a balance sheet.

Current Asset

Current Assets are assets expected to be converted into cash, sold, or consumed during a company's next operating cycle or within a year, including cash, inventory, and accounts receivable.